As China advances its long-term development agenda, improving people’s livelihood remains central to its modernization strategy. The Proposal of the Central Committee of the Communist Party of China on Formulating the 15th Five-Year Plan sets clear priorities, emphasizing high-quality and full employment, enhancement of the social security system, and promotion of high-quality population development. These goals reflect a broader commitment to ensuring that economic progress is both inclusive and sustainable. In a recent interview, Wang Xiaoping, Minister of Human Resources and Social Security, outlined the achievements of the past five years and the policy direction for the next stage of reform.

Progress in Employment and Social Security During the 14th Five-Year Plan

China has made substantial progress in the fields of employment and social security during the 14th Five-Year Plan period. Despite complex domestic and international environments, employment has remained stable, with 60.32 million new urban jobs created by September, well above the planned target. Unemployment rates remained below expected thresholds, and employment quality continued to improve.
At the same time, China has built the world’s largest social security network, with pension insurance participation exceeding 95%. Combined income and expenditure from major social insurance funds reached 70.8 trillion yuan, with a cumulative balance of 9.8 trillion yuan. Human resource development has also accelerated, supported by large-scale vocational training and the expansion of professional and technical talent pools. As China prepares its “15th Five-Year Plan,” these achievements provide a foundation for deeper reforms aimed at improving income distribution, promoting high-quality population development, and ensuring that the benefits of modernization are shared more equitably.

Building an Employment Landscape That Ensures Stability and Quality

Achieving high-quality and full employment is one of the central economic and social objectives for the coming years. While the long-term fundamentals of China’s economy remain favorable, structural challenges, including labor mismatches and external uncertainties, continue to require targeted policy responses. Authorities plan to strengthen industrial–employment coordination, encourage enterprises to stabilize and expand job opportunities, and support the development of new occupations in fields such as digital technology, high-end manufacturing, and modern services. Entrepreneurship will receive increased incentives, while employment monitoring and early-warning mechanisms will be strengthened to ensure timely responses to external shocks and technological disruptions.

Addressing Structural Employment Challenges

One of the most significant challenges facing the labor market is the mismatch between the supply and demand of skills. To address this, China will further improve its lifelong vocational training system, supported by the nationwide “Skills Illuminate the Future” initiative. A modern matching mechanism will enhance the alignment of human resource supply with evolving industrial needs, and employment services will be strengthened through a combination of digital tools and local-level engagement. This approach aims to increase access to employment services in underserved areas and ensure that specialized programs reach groups with the greatest need.

Supporting Key Groups to Achieve Stable Employment

Ensuring stable employment for key demographic groups will remain a core priority. China’s college graduate population is expected to continue rising, making it essential to broaden market-based and socially driven employment channels for youth. Authorities will encourage skilled talent to support rural revitalization efforts and will work to stabilize the employment and income of migrant workers, especially those lifted out of poverty.
Individuals experiencing employment difficulties will receive targeted assistance to ensure a robust bottom-line guarantee for basic livelihood needs. As of the third quarter, new urban job creation reached 10.57 million, representing substantial progress toward annual targets.

Deepening Reform of the Social Security System

With demographic shifts, including a rapidly aging population, China faces new challenges in strengthening the sustainability and inclusiveness of its social security system. The upcoming reform agenda focuses on building a multi-tiered pension insurance system, expanding enterprise annuity coverage, and promoting personal pensions to meet diverse needs. Social security benefits will be adjusted in line with economic development, with a particular focus on improving protection for low-income groups. Reforms will also expand the coverage of unemployment and work-related injury insurance, especially for flexible workers and those in emerging employment forms.

Enhancing the Long-Term Sustainability of Social Insurance Funds

Ensuring the long-term health of social security funds is a key priority. Policymakers will continue to improve actuarial systems, transfer more state-owned capital into social security funds, and enhance their investment and value-preservation mechanisms. Efforts to combat fraud will be intensified, helping safeguard the financial stability of the system.
The government also plans to optimize national administrative and service platforms, making social security systems more efficient, consistent, and accessible across regions.

Leveraging Human Resources to Drive High-Quality Development

Human resource development is critical to supporting technological innovation, industrial upgrading, and broader economic growth. China will further strengthen talent development systems, focusing on major areas such as the digital economy, green industries, and advanced manufacturing. Large-scale knowledge and skill upgrading actions will be expanded, with special emphasis on young talent and core technology fields.
Reforms will continue in professional title systems, public institution personnel management, and compensation structures, especially in universities, research institutes, and public hospitals. The labor market will also evolve to better recognize vocational skills and qualifications.

Expanding Participation and Mobility Across the Labor Market

To maximize human resource potential, China aims to increase labor force participation by optimizing age-related employment policies, supporting the employment of women, and accelerating the urbanization of agricultural migrants. New measures will promote the “silver economy,” tapping the potential of older workers and improving services for an aging population. By gradually implementing policies such as delayed retirement and improving market systems, policymakers aim to build a more dynamic, flexible, and inclusive labor market capable of supporting long-term development.